Home Depot profit falls, but tops expectations in the face of economic uncertainty
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Key Points:
- Home Depot's first-quarter profit declined compared to last year but exceeded Wall Street expectations, driven by demand from professionals and homeowners purchasing spring supplies.
- Revenue increased to $41.77 billion, surpassing analyst forecasts, while comparable store sales rose modestly by 0.6%, reflecting resilience amid a sluggish housing market.
- The U.S. housing market remains stagnant, with existing home sales flat year-over-year, impacted by rising mortgage rates and inflation, including a 28% increase in gasoline prices.
- CEO Ted Decker highlighted steady underlying demand despite economic uncertainties, and the company is focusing on growth in the professional segment while maintaining consumer sales.
- Home Depot projects fiscal 2026 sales growth between 2.5% and 4.5%, with comparable sales expected to be flat to up 2%, and its shares saw a slight increase in pre-market trading.